🌊 Bitcoin’s Binance open interest has fallen to roughly $8.3B, its lowest level since August 18th. BTC’s slide toward $68K triggered another cascade of long liquidations, forcing leveraged traders out and removing billions in speculative exposure.
🧹 This flush typically creates a healthier foundation after weeks of stress. The Binance hack two weeks ago started a major leverage unwind, and this latest selloff has cleared even more crowded long positions. Less leverage means fewer forced sellers waiting below the market if prices begin stabilizing.
🎯 If we see a quick recovery back above $70K to $72K this weekend, this would create some bullish sentiment and bring open interest quickly back up. But if BTC can stabilize while large exchange open interest stays near current lows, a rebound would be driven more by fresh spot demand than leverage. That would be a much cleaner setup for an organic crypto recovery.